A strategy may face constraints on how much capital it can handle due to a variety of reasons. For example, the liquidity in the markets in which a strategy trades imposes a natural limit on the strategy’s capacity. That is why it is important to have a well defined capacity for each strategy.
A selected strategy may charge the following fees:
Management Fee: A fixed fee to cover the expenses of managing a strategy, charged monthly
Performance fees: Fees charged if the strategy outperforms a pre-defined benchmark or threshold, charged monthly subject to high water mark
Exit load : Charged at exit
Please take note of the following:
1. All the above three fees are ad valorem and are applied to the value of your deployed capital
2. Delta Exchange for now has decided not to charge any fees on the strategies that are managed by the Delta team. Strategies managed by external providers may have non-zero fees
3. Strategies may incur trading fee on trade execution. These fees are already factored in the strategy returns, i.e. strategy returns are reported net of execution costs
The exit price will the unit price at the time your withdrawal request is processed. This means that: (a) the time at which you place your withdrawal request does not impact your exit price and (b) it is not possible to know the exit price at the time of placing a withdrawal request.
For a selected strategy, unit price is computed by dividing the value of capital deployed in a strategy by the number of units currently in existence. For calculating the value of capital deployed, open positions are marked at the fair mark price.
No, there are no lock-ins. You can choose to withdraw the capital deployed as soon as you subscribe to a strategy. However, please note that withdrawals are processed once a day only.
Yes, you can cancel your withdrawal request at any time before the withdrawal processing time, i.e. 12pm UTC.
There are no restrictions on individual withdrawals. However, there are limits on the aggregate withdrawals from a strategy. On a given day, total withdrawals from a strategy cannot exceed 20% of the capital deployed in the strategy. When total withdrawals are more than 20% of the capital deployed, individual withdrawal amounts will be scaled down proportionally to keep the total withdrawal amount within the allowed limit.
You can withdraw partial or full capital deployed on a strategy by clicking on the ‘Exit’ button in either ‘My Portfolio’ tab or the homepage of the strategy. All withdrawal requests are processed once a day at 12pm UTC. To be included in a day’s withdrawal batch, you must place your withdrawal request before 11am UTC. Any withdrawal request placed after 11am UTC will be processed on the following day.
The performance of a strategy may change with market conditions. For example, in a strongly trending markets, momentum strategies will tend to do well, while maker strategies may underperform. Furthermore, different strategies may have different risk-return profiles depending upon their trading universe, max allowed leverage and trading rules. You should understand how a strategy does its trading and the associated risks and then assess the strategy’s suitability for you. Please do keep in mind that no trading strategy is risk free and you may end up with negative returns on your deployed capital.
The trading strategies available for subscription here may employ leverage to take long or short positions. If markets move violently against the open positions of a strategy, the capital deployed on the strategy could see significant erosion. However, risk management and exit rules are part of all trading strategies to mitigate such risks.
Trading strategies can be categorised across multiple dimensions. From the perspective of robo trading strategies being offered here, first level of segmentation can be done between maker and taker strategies.
Maker strategies provide liquidity and look to ‘earn the spread’. Maker strategies tend to perform well in range bound volatile markets. Different maker strategies can provide liquidity of different types of contracts, e.g. large caps like BTC and ETH, Altcoin-BTC pairs or options. Please note that a single strategy can potentially make markets in multiple contracts.
Taker strategies aim to make profits by predicting market moves. Their trading is driven by well defined rules which are applied on market data to generate trading signals. Broadly speaking, there are two types of taker strategies: trend-following/ momentum and mean-reversion/ contrarian. The risk-return profile of a taker strategy depends on the trading universe (i.e. which types of contacts the strategy can take positions in), max allowed leverage, trading signal sensitivity (high sensitivity means frequent trading and shorter position holding periods).
A strategy is set of rules for making automated trading decisions. A strategy may have rules regarding which assets can be traded, whether both long and short positions are allowed, how much leverage can be taken and when should profits be taken and losses be cut.Therefore, different strategies may have varied risk-return profiles and may perform differently in different market conditions. For example, momentum strategies do well in strongly trending markets, while market making strategies will probably perform well in range-bound markets.
Delta Exchange offer a range of derivatives contracts which has ether as their underlying. These include: (a) USDT settled fixed expiry futures, (b) USDT settled perpetual contracts, (c) BTC settled perpetual contracts, (d) MOVE options, and (e) vanilla (put and call) options.
Delta Exchange offers both perpetual swap contracts and options on BCH. All these derivative contracts are USDT settled. If you wish to get a long exposure to BCH, you can do one of the following: (a) long the BCH perpetual contract, or (b) buy BCH call options, or (c) sell BCH put options. Conversely, if you wish to get a short exposure to BCH, you can do one of the following: (a) short the BCH perpetual contract, or (b) sell BCH call options, or (c) buy BCH put options.
Both margin trading and futures trading provide the ability to take leverage and take long or short exposure. However, in case of margin trading, leverage comes from explicit borrow and then doing in a trade in spot market of LTC. In contrast, futures have in-built leverage. Futures tend to be more capital efficient (offer up to 100x leverage vs. 3-5x for margin trading) and more liquid compared to margin trading.
Delta Exchange two perpetual contracts on XRP. One of the contracts is margined and settled in BTC and the other one is margined and settled in USDT.
Futures have No Time Decay (Options are wasting assets meaning that their value reduces as expiry approaches given all else remains same), Liquidity (Future markets have deep and reliable liquidity as compared to options), Pricing easy to understand (If the spot and futures prices are out of alignment, arbitrage activity would occur and rectify the imbalance).
Futures contracts have a fixed expiry date. In contrast, perpetual contracts do not expire.
Yes, deposit bonus will only be credited for first time USDT deposits. Converting from BTC to USDT in Delta won’t be eligible for any deposit bonus.
The deposit bonus can be used as margin for trading any of the derivative contracts on Delta Exchange. Say, you have received $100 as deposit bonus. If you use 100x leverage, you can take a position of $100,000 with the deposit bonus.
While the deposit bonus is not instantly withdrawable, it can be withdrawn after you have met the satisfied the conditions for bonus withdrawal. These conditions are explained in detail in the bonus offer rules below.
Delta Exchange has operating since August 2018. The team behind the exchange comprises of people who have previously worked with Wall Street firms like Citi and UBS and have started companies that were funded by top VCs viz. Sequoia and Softbank. The exchange has equally solid investors that include Aave, Kyber Network and CoinFund. The entire Delta Exchange team is committed to giving all our traders a safe and fair trading venue.
Yes. Tokens earned through referral mining on any given day are released uniformly over the next 90 days. This means that if you earn N DETO today, N/90 DETO will be released everyday for the next 90 days.
Each robo strategy has daily DETO rewards numbers associated with it. This is the number of DETO that is distributed to the subscribers of the strategy on a daily basis, in proportion to the number of units they hold. For example, if you own 100 units of a strategy which has 1000 units outstanding, then you will earn 10% of the DETO rewards.
No. Liquidity mining rewards are distributed to all the subscribers of a strategy where liquidity mining is enabled. However, the vesting of these rewards will remain suspended until the receiver has completed her KYC and become a verified customer.
Yes. Tokens earned through liquidity mining on any given day are released uniformly over the next 90 days. This means that if you earn N DETO today, N/90 DETO will be released everyday for the next 90 days.
Yes. Tokens earned through trade farming on any given day are released uniformly over the next 90 days. This means that if you earn N DETO today, N/90 DETO will be released everyday for the next 90 days.
As of now, you can use DETO for paying 25% of your trading fees. You will need to enable the ‘Use DETO to pay trading fees’ option in your account preferences. For more details on how this works, please have a look at this page.
We are also in the process of rolling out other utilities for DETO. These include a DETO-USDT market making pool, use of DETO as collateral for opening derivatives positions on Delta Exchange and a DETO staking pool which will backstop our existing insurance fund.
Yes, DETO earned through liquidity mining, trade farming or referral mining vests linearly over 90 days. The way these mining/ farming incentive schemes are designed is that every day certain amount of DETO is given our as mining/ farming rewards. The DETO you earn today, will vest over the immediately following 90 days. It is also important to note that the vesting of DETO that you have earned will be suspended until you complete your KYC.
No. Only verified users, i.e. those who have completed their KYC are allowed to buy DETO. Even if you earn DETO through liquidity/ referral mining or trade farming, you will need to complete your KYC before you can trade or withdraw it. Please go here to initiate your verification process. And, if you need help with the verification process, please have a look at this page.
DETO is an ERC20 token. You can see the details of the smart contract for DETO here.
Delta Exchange has enterprise-grade security and stores crypto in multi-sig wallets, managed and/or hosted by reputed custody solutions providers such as BitGo and Curv. For additional security, withdrawals are processed only once a day with manual review.
Delta Exchange offers trading in Bitcoin futures and futures on over 50 DeFi and altcoins. Crypto futures offer all the features of margin trading and are generally superior to margin trade. The futures on Delta Exchange provide: (a) up to 100x leverage vs. 3-5x available in margin trading , (b) ability to go both long, (c) tighter spreads and deeper orderbooks and (d) lower trading fees.
Delta Exchange is a crypto derivatives exchange and supports trading of Bitcoin futures and futures on over 50 top DeFi coins and altcoins. The exchange also offers options on Bitcoin, Ether, Litecoin, Link and BCH. Additionally, Delta lists a wide array of innovative derivative contracts that include DeFi Index futures, calendar spread contracts, interest rate swaps and MOVE options (straddles which can be used to speculate on volatility). The complete list of crypto derivatives that are listed on Delta Exchange is available here.
Delta Exchange is a platform that enables investors globally to trade Futures contracts on bitcoin and other leading cryptocurrencies/ crypto tokens with up to 100x leverage.
For any query, feedback, suggestion or business proposals, please write to us at: [email protected]
Delta Exchange customer support is available 24/7/365 via email. Please write to us at: [email protected]
You can’t buy or sell bitcoins on Delta Exchange. We offer trading of only cryptocurrency derivatives such as Futures contracts on bitcoin. These Futures contracts are margined and settled in bitcoins. Thus, to start trading on Delta, you’d need to already have bitcoins.
Mark Price is the price at which any open position is marked for the computation of Unrealised PnL and Liquidation. Mark Price is employed to avoid unwarranted liquidations which could result from high volatility of crypto-assets.
A Futures contract where the quote currency (i.e. the currency in which price of the underlying asset is denominated) is different from the base currency (i.e. the currency in which the PnL of a Futures position is computed) is known as an inverse Futures contract.
A Futures contract is a type of derivative that is essentially an agreement between two parties to buy/ sell an asset (e.g. bitcoin) of specific at a predetermined future date and price. The aforementioned asset is known as the underlying of the Futures contract.
A Futures contract where the quote currency (i.e. the currency in which price of the underlying asset is denominated) is same as base currency (i.e. the currency in which the PnL of a Futures position is computed) is known as a vanilla Futures contract.
Currently only Futures contracts are listed on Delta. But we plan to launch Options trading shortly.
Trading fee can vary from contract to and contract and are available here.
Maintenance Margin is the minimum amount of margin required to keep a position open. For any open position, when the Remaining Margin (Initial Margin + Unrealised loss) falls below the Maintenance Margin, liquidation process is triggered.
Margin is the collateral that you need to post when entering into a leveraged derivatives contract. Initial Margin is the amount required to enter into a new position. Initial Margin is dependent on the leverage offered in the derivatives contract.
All Futures contracts on Delta Exchange have built-in leverage. While the allowed leverage can vary from contact to contract, currently, the maximum leverage across all contracts is currently 100x.
Auto deleveraging (ADL) is triggered when the liquidation engine is unable to close a position in liquidation in the market without breaching the bankruptcy price of the position. In ADL, the position is closed against traders on the opposite side according to leverage and profit priority.
To avoid getting liquidated, please ensure that the Remaining Margin (Initial Margin + Unrealised Loss) is always greater than the Maintenance Margin.
A position goes into liquidation when the margin assigned to it falls below maintenance margin. In such a situation, the liquidation engine attempts to close the position in the market, while ensuring that the exit price does not breach the bankruptcy price ( the price at which the assigned margin becomes zero). If the liquidation engine is unable to close the position, auto deleveraging is triggered.